Inox Leisure- A faster running horse?

Stock Opportunities Not-so-Hidden Gems
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From CNBC interview with Ajay Bijli:

  • Plan to double the combined screen count in 5 to 7 years.
  • Approx capex will be 4000 cr.
  • Their counsels have advised CCI approval is not required. Also, there has been no notification yet from CCI. And the current screen count in india is 9500+ and PVR+Inox screen count is 1500.
  • SEBI, NCLT, Shareholders approval will take 6 to 9 months.
  • There is a strong momentum with release of movies like Kashmir files, RRR

reference: Ajay Bijli Of PVR & Siddharth Jain Of Inox Leisure Speaks On The Merger Of PVR & Inox | CNBC TV18 - YouTube

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Prabhudas Lilladher believes PVR and Inox merger is a win-win situation as it would lend invincible size advantage to the combined entity (pre-COVID screen/BO market share of ~46%/30% respectively) and result in material revenue & cost synergies by improving bargaining power with film distributors, real estate developers, ad-networks and ticket aggregators. Merger will relegate competition to backyard (Carnival & Cinepolis have ~400 screens each) and would further strengthen the size advantage as combined entity plans to add ~200 screens each year.

The merged entity will operate as PVR-Inox however, existing screens will continue under their respective brand names.

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I have query on GFL Ltd(Holding company of Inox ~ 43%)
Is it possible that GFL gets dissolve and holders gets PVR shares after completion of merger or INOX shares before merger

Experiance investors please share your views, knowledge and experience on this type of situations

Thanks.

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It will depend on how GFL dissolves. It can all the shares first and then return the cash to the shareholders.

Assuming that you are talking about the case where somehow the shareholders of GFL gets Inox’s equity. Pls do explain how this happens.

If the merger happens before Inox & PVR merger then the shareholders will get Inox shares.

When Inox & PVR merge then the GFL will hold PVR shares just like any other Inox holder.

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92

Satisfactory results by Inox.

  • Revenus at 589 this quarter vs 496 in Q1FY20.

  • OPM is 36% vs 30% Q1FY20. Largely due to lower employee cost. Employee cost is 20% lower than pre covid levels.

  • F&B revenue share is back to pre covid level.

  • Advertisement revenue did not. Advertisement share in revenue was 5% this quarter vs 9% in Q1FY20.
    This should IMO increase as advertisers realise that the footfall is back to pre covid levels. This should further increase the OPM.

Anyone who has done valuations for Inox?

investor presentation: https://www.bseindia.com/xml-data/corpfiling/AttachLive/038a72b1-0dfa-44c3-9cf7-4a385bcf61a7.pdf

disc: invested

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Could some one please explain why there is Exceptional items of (-2438 Lakhs),
I understand it is for the expenses incurred in connection with the amalgamation with PVR,

But Why this much!!!